March 19, 2020 (New York)— International law firm Proskauer advised British Telecommunications plc (BT) on its sale of selected domestic operations and infrastructure in 16 countries in Latin America to CIH Telecommunications Americas LLC (‘CIH’), an affiliate of CIH Technology Holdings. The transaction is subject to regulatory approval and is expected to be completed during this calendar year.
The transaction is part of BT’s ongoing transformation of its Global unit and will deliver continuity and growth opportunities for customers and employees in Latin America. BT will retain a strong presence in the region after the sale, delivering next-generation networking, cloud and security services to multinational customers across 21 countries. BT and CIH have also entered into wholesale and reseller agreements, under which CIH will act as a regional channel for BT’s products and services and continue to supply domestic connectivity services to BT.
BT and CIH have agreed not to disclose the terms of the purchase. Assets and operations in the scope of the transaction delivered revenue of £110m to BT in fiscal year 2018/19. They include two owned fibre networks with total length of 650km, 2000km of leased fibre lines, four data centres and five teleports. The divested business is headquartered in São Paulo, Brazil.
BT is one of the world’s leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services.
The Proskauer team included partners Daniel Ganitsky (Mergers & Acquisitions), Andrew Kleiman (Mergers & Acquisitions), and Martin Hamilton (Tax) as well as associates Jennifer Wong (Mergers & Acquisitions), Nick Pellegrino (Mergers & Acquisitions), Sarah Hughes (Mergers & Acquisitions), Saulo Salles de Padua (Latin America) and Aaron Lee (Tax).
Proskauer’s M&A practice stands alone among its peers in the legal industry, with an unmatched combination of deep sector knowledge and transactional strength. We are consistently recognized as among the best by leading business and legal publications, including Chambers and The Legal 500. With a transactional presence in the United States, Europe, Asia and Latin America, we have a deep understanding of the structuring, cultural and procedural issues that are often at the center of complex cross-border transactions. We provide strategic, disciplined and commercial advice geared towards achieving our clients’ goals in an efficient and practical manner.